Twitter losses double

Shares in Twitter fell sharply after it reported that its Q4 losses had nearly doubled. The social media service reported a loss of $167 million (156m) in the final three months of 2016, as against $90 million in the same period a year earlier. There were 319 million active users, 4 per cent up on a year earlier, but ad revenue fell slightly to $638 million.

Q4 revenues were $717 million, 1 per cent up on last year’s $710 million. Revenues and user numbers both fell short of analysts’ expectations. It was the company’s slowest quarterly revenue growth since it became a publicly listed company in November 2013.

Some analysts had expected US President Donald Trump’s widely publicised use of Twitter would give the service a financial boost, but it seems the controversial nature of this user has, if anything, proved toxic – particularly to advertisers. The compnay reported annual revenues up 14 per cent on last year to $2.5 billion. Twitter has now racked up losses of almost $2.8 billion since it floated on the stock market three years ago and the latest figures deal a blow to the company’s plan to turn a profit by the end of 2017.

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